10 Digital Marketing KPIs You Should Be Measuring (But Probably Aren’t)
Do you have any idea what makes your company’s digital marketing efforts successful? All your digital marketing should be measurable. You want to know why your company’s marketing efforts are killing it or getting killed by the competition. That’s where Key Performance Indicators (KPIs) come into play.
Digital Marketing KPIs are used by companies of all sizes to measure their digital marketing results. In this article, you’ll find 10 marketing KPIs that everyone should track.
It is often said that 80% of the outcome comes from 20% of your input. The same rule applies to digital marketing activities. Where should you focus your marketing efforts and resources? To answer this question, you should evaluate the performance of your SEO Strategy, lead generation, social media, and advertising.
Inspect what you expect
The following is a list of 10 helpful marketing KPIs you should be measuring…but probably aren’t.
- Sales Revenue
How much revenue has your digital marketing campaigns brought your company?
Understanding your sales revenue is important to knowing how effective your digital marketing campaign is. No company wants to spend money on something that isn’t generating money.
Most likely you would move that money to other marketing activities.
You can calculate your sales revenue from inbound marketing by utilizing the following calculation.
(Total sales for the year) – (Total revenue from customers acquired through digital marketing)
It’s simple math. The more leads you get the more sales opportunities you have and the more sales opportunities you have the better are your chances of sales growth. The importance of lead capture to a marketing and sales department is comparable to the importance of something like razor blades to an razor—it’s what drives them.
Leads to Close ratio—which is the number of leads you’ve received over a specific period of time divided by the actual amount of leads you’ve closed.
- Lifetime Value of a Customer (LTV)
With digital marketing, there is no better way to measure customer value than reach out to your current customers. Not only can doing this help you keep in contact(touches) with leads, but it can also help reduce churn, keep your customers happy, and expand your customers lifetime value.
You can calculate the lifetime value of your customers by using the following calculation:
(Average sale per customer) x (Average number of times a customer buys per year) x (Average retention time in months or years for a typical customer)
A great way to increase the lifetime value of your customers is by developing lead nurturing campaigns that reach out to existing customers.
This KPI is a great way to gauge your company’s ROI, and it’s an excellent figure to help strategize future business goals.
- Traffic-to-Lead Ratio
Understanding your website traffic and where your it is coming from, whether it’s organic, direct, social media or referrals is extremely important.
Website traffic consists of many things—all of which are highly measurable and heavily related to engagement. They include:
- Page views
- Page per Session
- Average Session Duration
- Bounce Rate
If your traffic is steady or increasing, but your traffic-to-lead ratio is low or decreasing, that’s a surefire sign that something is missing on-page.
This number will help you determine the conversion rate of your website; and if and when a change in your website’s text, design, web-form, etc. may be needed.
- Lead-to-Customer Ratio
After all of your marketing efforts, it’s important to know how many leads your sales team is able to close. You will want to calculate both your sales qualified lead conversion rate and sales accepted lead conversion rate.
What’s the difference between the two?
Qualified Sales Leads are leads considered to be sales ready based on their lead score or specific activities/triggers they completed. Most companies would consider a lead who filled out a web-form, such as “contact a sales rep” a lead who is ready to buy your product or service.
Accepted Sales Leads are simply leads your sales team considers opportunities, and have either contacted the lead directly or a scheduled call.
- Landing Page Conversion Rates
So, your landing page is up; it looks great, it follows all the best practices, but is it actually converting?
A landing page that doesn’t generate leads is worthless, no matter how much traffic it gets or how beautifully designed it is, so monitor your conversion rate.
One easy way to capture more leads is with MyFormData. MyFormData helps marketers instantly convert abandon web-forms into leads. More than 70 percent of all web forms are abandoned, and it continues to plague digital marketers. MyFormData offers 30 Days free to take it for a spin. No credit card needed. 10-minute setup.
Like your traffic to lead ratio, if your landing page is getting a lot of traffic, but has a low conversion rate, then it is a red flag that you need to change something on the page.
- Sales Team Response Time
In general, B2B leads receive staggeringly slow responses from sales teams. The quality of a lead degrades over time. Business2community research found “the odds of making a successful contact with a lead are 100 times greater when a contact attempt occurs within 5 minutes, compared to 30 minutes after the lead was submitted.
How fast does your sales team respond to leads? Once you’ve measured this KPI, you can then go about improving it.
- Social Media Reach and Engagement
Your social media strategy is a big part of your digital marketing efforts because it allows you to distribute your content and interact with your current and potential customers.
Social Media metrics show the impact of social media on your marketing efforts include:
- Number of lead conversions generated via each social media channel
- Number of customer conversions generated through social media channel
Look at the percentage of traffic associated with social media channels
like LinkedIn, Twitter, Facebook, and Instagram and breaking them down by the number of leads, customers, and percentage of traffic coming from each will help you determine where to focus your efforts.
Most social media sites have built in tracking. And remember, not all social media will work for your business, so be sure to track the ones that really matter to you and your customer.
- Blog Post Visits
Knowing the performance of your blog posts is a great way to gauge what your customers like to read and don’t like to read. Blog posts builds your brand equity and allows you to create content around what your customers want and need.
Blog posts should be a major contributor to website traffic. We consider blog posts to be a traffic-driving tactic. This means that it should bring traffic to your website in two ways. The first is via distribution when it is distributed ed on social media platforms and when it is emailed out to your email list. The second is that it should rank in search engines for your target keywords.
And remember, while frequency of content is important, the length and overall quality of the content you’re putting on your blog is vitally important. A lot of companies have no problem starting a blog. Maintaining it is the hard part. Do your best to be disciplined and active with your blogs and your blog performance will prosper.
- Email Marketing Stats
Your email marketing strategy is a lifeline to your prospects and customers. Every email marketing campaign should be analyzed. The KPI’s to track include:
- Delivery Rate
- Unsubscribe Rate
- Open Rate
- Click Through Rate
- Conversion Rate
Gist is a terrific engagement tool with excellent tracking.
Whether you work in B2B or B2C, tracking your Digital Marketing KPIs can help validate everything you do in marketing. Thanks to the countless tracking tools available today, businesses today have more opportunity for transparency in their marketing efforts than ever before. Get to know your marketing failures and fix them. Get to know your digital marketing successes and repeat them.